An ISA (individual savings account) is simply that: a savings account on which you do not have to pay tax on the interest your money earns, currently to £5,100 in one year. Possibly the best rates on the market at present are offered by Northern Rock with three new issues of fixed rate cash ISA’s. The accounts are available now, with a minimum deposit of £500, at fixed rates over a period of one, three or five years.
The fixed rate issues are 150, 151 and 152. Issue 150 offers 3.05% tax-free for one year, fixed to 15 January 2012. Issue 151 offers 3.5% fixed for three years to January 2014, and issue 152 offers 4.10% fixed for five years to January 2016.
New accounts can be opened through the post or through your nearest branch office. If you choose the post, you can download and print an application or fill out the application online, then print and post it with the required deposit to the Head Office. You can also transfer a cash ISA from another provider to Northern Rock.